Claims and Coverage
Insurance companies view claims and coverage differently. A claim is a request for payment of an expense and a policyholder files a claim when an insured person needs to be reimbursed for the cost of damages or medical bills. Coverage is the amount of money insurance companies will pay for specific types of claim and can be determined in advance of a claim being filed. In regards to rental cars, many insurance companies today offer rental car coverage as a policy option. This coverage is usually purchased along with full car insurance coverage and pays out in the event of a covered loss; as with all car insurance, policyholders are responsible for the deductible.
Rental Car Coverage
Rental car coverage is typically viewed by insurance companies as a way to provide customers with additional financial protection in the event of an automobile accident. It covers the costs of a rental car for the length of time it takes to repair, replace, or receive a settlement on the vehicle that is covered by the policy. Rental car coverage can be quite expensive; while some policies may cover up to $30,000 in rental car expenses, this coverage can add up to an additional $200-$300 a year to the total policy costs.
Comparing Rental Car Coverage
In order to determine if rental car coverage is the right fit for an individual’s policy needs, it is important to compare coverage plans and consider what might be covered under the plan. In most cases, car insurance policyholders should read their policies carefully and look for any special restrictions or conditions that might impact their coverage. Additionally, individuals should speak with a representative from the insurance company or check the company’s website for details about the coverage and what expenses are included and excluded from the policy.
The Cost of Rental Cars
In some cases, the cost of a rental car can be covered under the individual’s car insurance policy. When considering the cost of a rental car, it is important to take into account the cost of gas, insurance, and any other fees associated with a rental. Additionally, individuals should determine if there is any coverage beyond what is provided by the rental car company. It is also important to note that rental car coverage typically does not cover damage caused by the negligence of the driver.
Alternatives to Rental Car Coverage
In some cases, individuals may be able to save money by choosing a third-party coverage. In the event of an accident, many credit card companies provide their customers with rental car coverage at no additional cost. Additionally, some auto clubs and associations offer members discounted rates on rental cars.
Risk Factors
Individuals should also be aware that there are certain risk factors to consider when deciding whether or not to purchase rental car coverage. In some cases, individuals may not receive full reimbursement for the costs of repairs or for the rental car, depending on the terms of the policy. It is also important to note that rental car coverage is not designed to cover the cost of accident damage or personal injury.
Final Thoughts
Whether or not insurance companies have to pay for rental car coverage is ultimately up to the individual’s policy and their needs. Before making a decision, it is important to compare policy options, understand the coverage details, and read any applicable restrictions or conditions associated with the coverage. Additionally, individuals should consider alternatives such as third-party coverage and discounted rates from auto associations. By taking the time to research and consider the options, individuals can make the best decision for their needs.
